IN THE CIRCUIT COURT OF THE FIFTEENTH JUDICIAL CIRCUIT IN AND FOR WEST PALM BEACH COUNTY, FLORIDA

Case Number 50 2015 CA 002786XXXXMBAA

OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA

Plaintiff, vs.

PROTECH SUPPORT, LLC d/b/a RAPID TECH SUPPORT and DAVID STEIN, an Individual and THOMAS PANIK, SR., an Individual

Defendants, and INTERACTIV EDUCATION, LLC d/b/a DIRECT STUDENT AID, INC. and CAREFREE HEALTH SERVICES, INC.

Relief Defendants.

--------------------------~/ CONSENT FINAL JUDGMENT AND STIPULATED PERMANENT INJUNCTION

This Consent Final Judgment and Stipulated Permanent Injunction was entered upon

agreement between Plaintiff, The Office of the Attorney General, Department of Legal Affairs,

State of Florida (The "Department"), and Defendants, Pro Tech Support, LLC d/b/a Rapid Tech

Support ("ProTech"), David Stein, an individual, and Thomas Panik, Sr., an individual

(collectively referred to as the "Defendants").

JURISIDCTION AND VENUE

The Parties hereby agree and stipulate that this Court has jurisdiction over the parties and

the subject matter pursuant to the provisions of the Florida Deceptive and Unfair Trade Practices

Act, Chapter 501, Part II, Florida Statutes, and that venue is proper in this Court in that

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actions at issue took place in or affected more than one judicial circuit in the State of Florida.

The Parties, having stipulated that this Court has jurisdiction to enter a final judgment and

permanent injunction in this matter, agree to the entry of the Consent Final Judgment and

Stipulated Permanent Injunction and to the findings of fact set forth below. The Court having

reviewed the file and necessary papers, makes the following findings:

FINDINGS OF FACT

I. The Parties

A. The Office of the Attorney General, Department of Legal Affairs, State of Florida

(the "Department" or "Plaintiff') is an agency of the State of Florida and the enforcing authority

under the Florida Deceptive and Unfair Trade Practices Act ("FDUTP A"), Florida Statutes

Section 501.201 et seq.

B. ProTech Support, LLC d/b/a Rapid Tech Support ("ProTech"), is a Florida

limited liability company organized under the laws of Florida on or about September 1, 2013,

and maintains a principal place of business registered as 135 A venue L, Delray Beach, Florida

33483. Since its inception, ProTech has marketed, advertised, and sold products and services to

consumers relating to technical support services for personal computers.

C. David Stein is an individual over the age of 18 and is the President, registered

agent, and an owner ofProTech. Stein was an owner and officer ofProTech, but did not have an

active role until September 2014.

D. Thomas Panik, Sr. is an individual over the age of 18 and has been an officer and

owner ofProTech since ProTech's inception on September 1, 2013.

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II. Background

E. The Depatiment initiated an investigation into allegations that ProTech engaged

in acts or practices in the State of Florida and elsewhere that were misleading, unfair, deceptive

or unconscionable in the marketing, advertising, and performance of providing technological

support services and software products ("technical and/or software support services and

products"). The allegations include: engaging in deceptive advetiising to lure consumers under

false pretenses to contact ProTech through misleading pop-up advertisements directing

consumers to contact a toll-free telephone number; engaging consumers to allow Pro Tech to gain

remote access to consumers' personal computers in order to conduct a misleading diagnosis of

computer and software issues; convincing consumers that the diagnostic revealed damage and/or

malware on consumers' personal computers, when it did not; and persuading consumers to

purchase unnecessary and costly software support services and products to remedy non-existent

computer issues.

F. The alleged unfair and deceptive acts, if proven at trial, would violate the Florida

Deceptive and Unfair Trade Practices Act Section 501.201 et seq as well as, potentially other

state or federal regulations.

G. In lieu of an extended litigation and trial, the parties stipulate to the entry of this

consent final judgment and permanent injunction. Pro Tech, David Stein, and Thomas Panik, Sr.,

waive any and all rights and defenses that might preclude entry and the full force and effect of

this consent final judgment and permanent injunction.

WHEREFORE, based upon the foregoing factual findings, it is hereby ORDERED

AND ADJUDGED: 3 v> --+-

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SCOPE OF CONSENT FINAL JUDGMENT AND STIPULATED PERMANENT INJUNCTION

1. Final Judgment is hereby entered in favor of the Office of the Attorney General,

Department of Legal Affairs, State of Florida (the "Department"), 110 SE 61h Street, 1 01

h Floor,

Fort Lauderdale, Florida 33301 , and against ProTech Support, LLC, 135 Avenue L, Delray

Beach, Florida 33483; David Stein, at 9584 Savona Winds Dr., Delray Beach, Florida 33446;

Thomas Panik, Sr., at 972 Dogwood Drive, Delray Beach, Florida 33483 (collectively referred to

as "Defendants").

2. The purpose of FDUTPA is to "protect the consuming public and legitimate

business enterprises from those who engage in unfair methods of competition, or

unconscionable, deceptive, or unfair acts or practices in the conduct of any trade or commerce."

Section 50 1.202(2). To that end, "reasonable restrictions upon the future activities of any

defendant to impede her or him [sic] from engaging in or establishing the same type of

endeavor" are permitted by the Act, and courts may "order any defendant to divest herself or

himself of any interest in any enterprise." Section 50 1.207(3). Prohibiting business activities is

constitutional when the limitation is rationally related to the State's objective of preventing

deceptive practices. Fraternal Order of Police v. Dept. of State, 392 So. 2d 1296, 1302 (Fla.

1980) (upholding regulations in the Law Enforcement Funds Act even though they were not "the

best possible means to eradicate the evils perceived" because they were not "wholly unrelated"

to the legislature's purpose). As such, a permanent injunction is appropriate.

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I. Injunctive Terms

3. The Court hereby permanently enjoins ProTech, David Stein, Thomas Panik, Sr.,

as well as their officers, agents, servants, employees, attorneys, and those persons in active

concert or participation with them who receive actual notice of this Order, whether acting

directly or indirectly, from the following:

a. Any acts or practices that violate the Florida Deceptive and Unfair Trade

Practices Act, Chapter 501, Part II, Florida Statutes; including without limitation:

b. deceptive marketing or advertising, including the dissemination of any

advertisement or promotion that is meant to lure consumers under false pretenses;

c. internet advertising or marketing meant to direct consumer traffic to any website,

webpage, or secondary advertisement, related to any technical and/or software

support entity where ProTech, David Stein, or Thomas Panik, Sr. conduct

business;

d. engaging m any business that markets or sells software support services or

products;

e. receiving payment or any other benefit through any partnership, alliance, joint

venture, or agreement with any business that offers consumers technical support

services and/or software products;

f. using any false or misleading statement to induce any person to pay for goods or

services in connection with the marketing, advertising, promotion, distribution,

offering for sale of any goods or services;

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g. selling, renting, leasing, transferring, using, disclosing, or obtaining any pecuniary

benefit from the consumer information, including name, address, telephone

number, credit card number, e-mail address, or other identifying information of

any person, that Pro Tech, David Stein, and/or Thomas Panik, Sr. obtained prior to

the entry of this Court's Order in connection with any activity that pertains to the

subject matter of the Attorney General's investigation ofProTech;

h. any violation of the Restore Online Shoppers ' Confidence Act (ROSCA), 15

U.S.C. §8402, including but not limited to 15 U.S.C. §8402(a) relating to

disclosures required to consumers prior to any post-transactions charges or

attempts to charge; and

1. failing to disclose in inbound telephone calls from consumers, promptly and in a

clear and conspicuous manner, the nature of the goods or services and/or any

other fact material to consumers concerning any good or service.

II. Monetary Judgment For Restitution And Civil Penalty And Partial Suspension

4. FDUTP A authorizes reimbursement to consumers who have been damaged by deceptive

trade practices. §501.207(3), Fla. Stat. All consumers who paid money in response to a

deceptive trade practice are entitled to their money back, and there is no need for an

individualized inquiry into how each consumer reacted to the practice. F. T C. v. Wilcox, 926 F.

Supp. 1091, 1105 (S.D. Fla. 1995); FTC v. People's Credit First, No. 8:03-CV-2353-T, 2005

WL 3468588 (M.D. Fla. Dec. 18, 2005).

5. While restitution serves the purpose of restoring an injured person to the financial

position held before a defendant received an unlawful benefit, with a civil penalty "the law

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exacts payment by way of punishment for doing some act which is prohibited ... " Sun Coast

Intern. Inc. v. Dept. of Business Regulation, 596 So. 2d 1118, 1121 (Fla. 1st DCA 1992) (internal

citations omitted). Anyone who has used a trade practice found to be unlawful under the Act is

liable for a civil penalty of up to $10,000.00 per violation. §501.2075, Fla. Stat. Each instance in

which a deceptive representation is disseminated constitutes a violation. US. v. Reader's Digest

Ass'n, Inc., 662 F. 2d 955, 966 (3d Cir. 1981).

6. Judgment in the amount of Five Million Five Hundred Thousand Dollars ($5,500,000.00)

is entered in favor of Plaintiffs against Defendants, for which let execution issue forthwith,

apportioned as follows:

a. Defendants are jointly and severally liable for Two Million Five Hundred Thousand

Dollars ($2,500,000.00) in consumer restitution.

1. Of this amount, Defendants are order to pay One Hundred Thousand

($100,000.00), and shall be paid by wire transfer, certified funds or cashier's

checks, payable to the Department of Legal Affairs Escrow Fund, and shall be

sent to Michelle Pardoll, Assistant Attorney General, Office of the Attorney

General, Consumer Protection Division, 110 SE 6111 Street, 101h Floor, Fort

Lauderdale, Florida 33301 , paying equal monthly installments of $10,000 each,

over a period of 10 months, the first payment beginning immediately with the

execution of this consent final judgment and stipulated permanent injunction.

Upon receipt, each check shall be deposited into the Department of Legal Affairs

Escrow Fund, in accordance with Section 501.2101 (1 ), Florida Statutes for

distribution to consumers according to the sole business judgment of the

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Department. In the event actual restitution for future complainants exceeds the

Restitution Amount, then the Restitution Amount will be distributed pro-rata to

the complainants determined by the Department to be eligible for restitution. In

no event shall any individual consumer receive more than the amount they are

actually owed. If any restitution monies remain after the distribution of the

Restitution Amount, the Department will deposit the remaining monies into the

Department of Legal Affairs Revolving Trust Fund and it shall be used to defray

the costs of restitution distribution and any attorneys' fees and costs incurred in

this matter.

b. In this case, more than 300 transactions of unfair or deceptive conduct occurred.

Given the blatant nature of the violations and the egregiousness of the consumer

harm, the appropriate penalty is $10,000.00 per violation, for a total penalty of Three

Million Dollars ($3,000,000.00).

7. Upon payment of $100,000.00, referenced in paragraph 3(a)(i), the remainder of the

judgment is suspended, subject to the provisions below.

8. The Plaintiff's agreement to the suspension of part of the judgment is expressly premised

upon the truthfulness, accuracy, and completeness of Pro Tech, David Stein, and Thomas Panik,

Sr.'s sworn financial statements, sworn statements, and related documents, namely:

a. David Stein's Individual Financial Affidavit, provided to Plaintiff by Robby

Birnbaum, as an attachment to electronic mail, dated March 6, 2015.

b. Thomas Panik, Sr.'s Individual Financial Affidavit, provided to Plaintiff by Robby

Birnbaum, as an attachment to electronic mail , dated March 6, 2015.

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c. ProTech Support, LLC' s Financial Affidavit, provided to Plaintiff by Robby

Birnbaum, as an attachment to electronic mail, dated March 6, 2015 .

d. The sworn statement of David Stein, which took place on February 3, 2015.

e. The sworn statement of Thomas Panik, Sr. , which took place on February 3, 2015.

f. Any documents submitted pursuant to this proposed consent final judgment,

including the Form 1.977.

9. The suspension of the judgment will be lifted if, upon motion by Plaintiff, the Court finds

that ProTech Support, LLC, David Stein, or Thomas Panik, Sr., made any misstatement or

omission in the affidavits and statements described in Paragraph 5, Subparagraphs (a) through

10. The suspension of the judgment will be lifted if, upon motion by Plaintiff, the Court finds

that ProTech Support, LLC, David Stein, or Thomas Panik, Sr. violated the terms of this consent

final judgment and stipulated permanent injunction.

11. If the suspension of the judgment is lifted, the judgment becomes immediately due in the

amount specified in Paragraph ' above, less any payment previously made pursuant to Paragraph

O(a)(i), plus interest computed from the date of entry of this Order.

12. The Department also reserves the right to seek attorneys' fees and costs incurred as a

result of any future noncompliance by any party.

13. The facts alleged in the Complaint establish all elements necessary to sustain an action by

Plaintiffs pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A),

and this Order will have collateral estoppel effect for such purposes.

III. Additional Terms

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14. ProTech, David Stein, and Thomas Panik, Sr. shall not destroy, mutilate, conceal, alter,

or dispose ofProTech's books, records, contracts, financial records, consumer files and financial

information, regardless of the manner in which it is stored, for a period of two (2) years from the

date of this consent final judgment and stipulated permanent injunction. At any point during the

two (2) year retention period set forth herein, David Stein shall make any and all books and

records available to the Department within three (3) business days upon request.

15. David Stein and Thomas Panik, Sr. shall each complete and sign a Credit Report

Authorization and Release Form provided by the Office of the Attorney General and shall return

the aforementioned Form with this signed and notarized consent final judgment and stipulated

permanent injunction. David Stein and Thomas Panik, Sr. shall each grant authorization to the

Consumer Protection Division, Office of the Attorney General of Florida, to obtain periodic

standard factual data credit reports through the credit reporting agencies (i.e., Experian, Equifax,

and Transunion) for the time period that any balance on the debt is outstanding. This

authorization shall remain in effect until such time that the full terms of this consent judgment is

fulfilled.

16. David Stein and Thomas Panik, Sr. shall each complete under oath Florida Rule of Civil

Procedure Form 1.977 (Fact Information Sheet), including all required attachments, and serve it

on the Attorney General, within 30 days from the date the Court enters an Order on this consent

final judgment and stipulated permanent injunction, unless the judgment is satisfied. Failure to

comply with this section shall constitute a violation of this consent final judgment and stipulated

permanent injunction and may subject ProTech, David Stein, and Thomas Panik, Sr. to any and

all penalties set forth herein.

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17. Pursuant to Section 222. 11, Florida Statutes, and the executed Waiver of Garnishment

Exemption attached hereto as Exhibit A, David Stein waives any claim of exemption from

garnishment in any garnishment proceeding initiated to collect monies due under this consent

final judgment and stipulated permanent injunction.

18. Pursuant to Section 222.11, Florida Statutes, and the executed Waiver of Garnishment

Exemption attached hereto as Exhibit B, Thomas Panik, Sr. waives any claim of exemption from

garnishment in any garnishment proceeding initiated to collect monies due under this consent

final judgment and stipulated permanent injunction.

19. ProTech, David Stein, and Thomas Panik, Sr. shall each complete sections l(a), (b);

2(a),(b); 3, and 4, as well as sign and date the attached Form 4506-T, attached hereto as Exhibit

C. Please refer to the instructions in Exhibit C in order to complete the required sections.

20. ProTech, David Stein, and Thomas Panik, Sr. shall not affect any change in the form of

doing business or the organizational identity of any of the existing business entities or create any

new business entities as a method of avoiding the terms and conditions set forth in this consent

final judgment and stipulated permanent injunction.

21. This consent final judgment and stipulated permanent injunction is continuing in nature

and shall be binding on any and all successors or assigns of Pro Tech, David Stein, and Thomas

Panik, Sr.

22. This consent final judgment and stipulated permanent injunction is not a waiver of any

private rights of any person or release of any private rights, causes of action, or remedies of any

person against ProTech, David Stein, Thomas Panik, Sr. , or any other person or entity.

Notwithstanding any other provision of this consent final judgment and stipulated permanent

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125~ Initials V

injunction, nothing herein shall be construed to impair, compromise or affect any right of any

government agency other than the Office of the Attorney General for the State of Florida relating

to the operative facts at issue.

23. Nothing herein shall affect ProTech, David Stein, or Thomas Panik, Sr. ' s (a) testimonial

obligations, or (b) right to take legal or factual positions in defense of litigation or other legal

proceedings to which the Department is not a party.

24. The Parties jointly participated in the negotiation of the terms articulated in this consent

final judgment and stipulated permanent injunction.

25. Acceptance by the Office ofthe Attorney General shall be established by the signature of

the Deputy Attorney General. The receipt by the Office of the Attorney General of any monies

pursuant to the Judgment does not constitute acceptance by the Office of the Attorney General,

and any monies received shall be returned to Settlement Parties if this Settlement Agreement is

not accepted and executed by the Associate Deputy Attorney General.

IV. Penalties For Noncompliance

26. Any failure to comply with the terms and conditions of this consent final judgment and

stipulated permanent injunction is by statute prima facie evidence of a violation of Chapter 50 I,

Part II, Florida Statutes, and upon failure to comply with the terms and conditions of this consent

final judgment and permanent injunction, the suspension of the judgment will be lifted, and

Defendants will be subject to attorneys' fees and costs in lifting the judgment and the collection

thereof. In the event that a court of competent jurisdiction makes a determination that a violation

of any provision of this consent final judgment and stipulated permanent injunction has occurred,

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then the violating Defendant(s) shall be jointly and severally liable for the full judgment, as well

as any additional attorneys' fees and costs, and other relief as may be allowed by law.

27. This Court retains jurisdiction of this case to enforce the terms of this consent final

judgment and stipulated permanent injunction and enter any further Orders as may be necessary

to ensure compliance, including by contempt proceedings, civil and/or criminal.

V. Waiver By Parties Of Hearing

28. This document is signed in anticipation of this consent final judgment and stipulated

permanent injunction being submitted to the Court for approval, without necessity of hearing,

which is hereby waived by all parties. The signatures below indicate the parties' consent and

agreement to this consent final judgment and stipulated permanent injunction.

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AGREED TO:

By: --~=-=-~~------------------------------------~~--~-= David Stein, Authorized agent and Chief Operating Officer of Pro Tech Support, LLC

STATE OF FLORIDA )

COUNTY OF PALM BEACH )

BEFORE ME, an officer duly authorized to take acknowledgments in the State of Florida, David Stein, personally appeared, as authorized agent of the designated entities. He acknowledged before me that he executed the foregoing instmment for the purposes therein stated on the; 1-1-L.. day of

Mo....-\ ,2015. I

Subscribed to before me this 1~ day of H <=-:'\ '2015.

SENNIE GERLACH-KLEIN MY COMMISSION # FF 071040 XPIRES: November 18, 2017

Bondeil Thru Notary Public Underwriters (print, type, or stamp commissioned Not~;i!ii~Wj~;;;o;;;;;;;;;;;;;;o;;;;,...;;;o;;;;;;;;;;;;;:;;;;;;~

Personally known ____ or Pr~duced Identification ./ , (check one)

Type of identification Produced: (.\ c-._D(\ve.Js L&~ I

WITNESSED BY COUNSEL FOR PROTECH SUPPORT, LLC:

By: -_!_~....:::....____:__U--____ _ -----""s--f::::_h-+-/~t r---:7" Franklin S. Homer, Esq. (Da,t'e Signed) Greenspoon Marder, P.A. Florida Bar No. 041182

14 ~ Init ials V

STATE OF FLORIDA )

COUNTY OF PALM BEACH )

BEFORE ME, an officer duly authorized to take acknowledgments in the State of Florida, David Stein, personally appeared, as authorized agent of the designated entities. He acknowledged before me that he executed the foregoing instrument for the purposes therein stated on the -1 day of

\-\0-J.-1 '2015. ~ I

Subscribed to before me this ~ay of M&J.....~ , 2015.

I l NOTARY PUBLIC

I

SENNIE GERLACH-KLEIN MY COMMISSION # FF 071040

EXPIRES: November 18, 2017 •• Bonded Thru Notary PubiiC Underwriters

(print, type, or stamp commissioned Notary Public)

Personally known __ or Produced Identification ./ (check one)

Type of Identification Produced:£\ o::J2-<w~S l~e' .:J

WITNESSED BY COUNSEL FOR DAVID STEIN:

By: Franklin S. Homer, Esq. Greenspoon Marder, P.A. Florida Bar No. 041182

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7 (Date Signed)

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By: Thomas Panik, Sr., In'

STATE OF FLORIDA )

COUNTY OF PALM BEACH )

(Date $igned)

BEFORE ME, an officer duly authorized to take acknowledgments in the State of Florida, Thomas Panik, Sr., personally appeared, as authorized agent of the designated entities. He acknowledged before me that he executed the foregoing instrument for the purposes therein stated on the -1-.k...-day of

Ha.......~ , 2015. --r-

I

Subscribed to before me this1-h.- day of_-'-M-"-=a.....="'f---1

_ _ , 2015.

NOTARY PUBLIC

(print, type, or stamp commissioned Notary Public)

SENNIE GERI.JICK·Klt.il'l MY COMMISSION# FF 011040

EXPIRES: November 18, 2017 ' Bonded Thru Notary Pub!ic.llndenmt.rs

Personally known __ or Produced Identification V (check one)

Type of Identification Produced: ~ \ vl) ~\J~~ ~~

WITNESSED BY COUNSEL FOR THOMAS PANIK, SR.:

By gc_~ Franklin S. Homer, Esq. Greenspoon Marder, P.A. Florida Bar No. 041182

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r/7~r-cnate Signed)

OFFICE OF THE ATTORNEY GENERAL FOR THE STATE OF FLORIDA:

Patricia A. Conners Deputy Attorney General Depattment of Legal Affairs Office Of The Attorney General The Capitol Tallahassee, FL 32399-1050

Dated: S:/1 i/11 t

Michelle Pardoll Assistant Attorney General Florida Bar No. 0073915 Office OfThe Attorney General Consumer Protection Division 110 S.E. 61

h Street, 10111 Floor Fmt Lauderdale, Florida 33301 Telephone: (954) 712-4600

Dated: 5/~//~ I 7

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ENTRY OF JUDGMENT

SO ORDERED. Approved and Entered in Chambers in Palm Beach County, Florida this

Jd-day of ffiC<.-vt , 2015.

cc:

Michelle Pardoll Assistant Attorney General Florida Bar No. 0073915 Office of the Attorney General Consumer Protection Division l l 0 S .E. 6111 Street, 1 0111 F loor Fort Lauderdale, Florida 33301 Telephone: (954) 712-4665

Robby H. Birnbaum, Esq. Greenspoon Marder, P.A. l 00 W. Cypress Creek Rd. STE 700 Fort Lauderdale, Florida 33309 Telephone: (954) 343-6959

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By: P~&t efr'CUitiudge

PETER D. BLANC

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